Examining the Factors Influencing Tax Non-Compliance among Small and Medium Enterprises in the Cape Coast Metropolis

Abstract

The study assessed the factors influencing tax non-compliance among firms in Cape Coast registered with the National Board for Small-Scale Industries. The researcher was guided by a descriptive research design. The researcher collected data from 152 firm owners in the Cape Coast Metropolis and employed SPSS Version 20 for the analysis. The main finding of the study was that inadequate management skills, poor record keeping, cumbersome filing processes, complex business environment and high tax rates are the main factors that influence tax non-compliance among firms. Hence, it was recommended that the tax agencies and other stakeholders should formulate and implement good tax policies and education, which among other things, will be more dedicated to making organizations pay their taxes. Further, the tax authorities should implement tax policies such as simplification of the tax laws, tax reforms, and intensive tax education among others to collect more revenue from organizations in the region.